In the competitive world of ecommerce, choosing the right payment processing solution is crucial for success. Authorize.net, established in 1996, is a veteran in the payment gateway industry, known for its robust security features and reliability.
Square, founded in 2009 by Jack Dorsey and Jim McKelvey, revolutionized mobile payments with its easy-to-use card reader and has expanded into a comprehensive financial ecosystem.
For ecommerce businesses, understanding how Authorize.net and Square compare in terms of features, pricing, support, and integration capabilities is essential. This article provides an in-depth analysis to help you make an informed decision that aligns with your business needs.
Overview of Features for Square vs Authorize.net
This table shows the top features of the two competitors, giving you a quick overview of what which option you should choose:
Pro tip: There are plenty of great Square and Authorize.net alternatives, and knowing most of them before picking the solution for you can prove to be very valuable.
In-Depth Feature Analysis
Choosing the right payment solution is important for your ecommerce business. Let's compare Authorize.net and Square to see which one fits your needs best.
Transaction and Monthly Fees
Authorize.net charges a standard 2.9% + $0.30 per transaction, along with a $25 monthly gateway fee. This fee grants access to their payment gateway, virtual terminal, and basic fraud detection tools. The monthly fee is a fixed cost regardless of sales volume.
Square charges 2.9% + $0.30 per online transaction and 2.6% + $0.10 for in-person transactions using their POS system. There are no monthly fees for basic services, making it a cost-effective solution for businesses with varying sales volumes.
Analysis:
- Authorize.net may be more cost-effective for businesses with high transaction volumes, where the monthly fee becomes negligible.
- Square is generally better for startups and small businesses due to the absence of monthly fees and predictable per-transaction costs.
Considerations:
- Calculate your average monthly transactions to determine if Authorize.net's monthly fee is justifiable.
- For businesses with lower sales volumes or tight budgets, Square's lack of monthly fees can be advantageous.
Payment Methods and POS Hardware
Accepting various payment methods enhances customer convenience and can increase sales. Additionally, reliable POS hardware is essential for businesses operating both online and offline.
Authorize.net supports major credit cards, e-checks (ACH), Apple Pay, and PayPal. It does not offer proprietary POS hardware but can integrate with third-party POS systems, which may require additional setup and costs.
Square accepts credit and debit cards, Apple Pay, Google Pay, and offers a range of proprietary POS hardware, including the Square Reader, Square Stand, and Square Register. These devices are designed for ease of use and integrate seamlessly with Square's software.
Analysis:
- Authorize.net is suitable for online-focused businesses that do not require POS hardware.
- Square is ideal for businesses looking for an integrated solution for both online and in-person sales.
Considerations:
- If you need POS hardware, Square provides a comprehensive range of options.
- Authorize.net may require third-party hardware solutions, potentially increasing complexity and costs.
Ecommerce Integration and Developer Friendliness
Seamless integration with ecommerce platforms and ease of setup are crucial for operational efficiency.
Authorize.net integrates with major ecommerce platforms like Shopify, WooCommerce, and Magento. However, it may require more technical expertise for setup and customization, as its APIs are less user-friendly compared to some competitors.
Square offers the Square Online Store, a free website builder powered by Weebly, suitable for businesses starting online. It also integrates with platforms like WooCommerce, Wix, and BigCommerce. Square provides developer-friendly APIs and comprehensive documentation, simplifying the integration process.
Analysis:
- Authorize.net may require more technical resources for integration, increasing development time.
- Square offers easier integration with less technical overhead, beneficial for businesses without dedicated IT staff.
Considerations:
- Assess your technical capabilities and resources before choosing a gateway.
- For quick and easy integration, especially on popular ecommerce platforms, Square may be more suitable.
Recurring Billing and Subscription Management
Managing recurring payments is essential for businesses with subscription models or membership services.
Authorize.net offers an Automated Recurring Billing (ARB) feature, allowing for customizable billing cycles, amounts, and durations. Integration may require additional development effort and technical expertise.
Square provides built-in recurring payment options and invoicing features. Merchants can set up recurring invoices, manage subscriptions, and automate billing directly from their Square dashboard.
Analysis:
- Authorize.net offers advanced customization for businesses with complex subscription needs.
- Square provides a user-friendly solution suitable for businesses seeking simplicity and ease of use.
Considerations:
- If your subscription model requires intricate configurations, Authorize.net may be the better choice.
- For straightforward subscription management, Square's built-in tools are advantageous.
Fraud Protection
Protecting your business from fraudulent transactions minimizes chargebacks and financial losses.
Authorize.net employs an Advanced Fraud Detection Suite (AFDS) with customizable filters, allowing merchants to tailor fraud prevention measures to their specific needs.
Square includes fraud detection tools as part of its service, monitoring transactions for suspicious activity and providing chargeback protection for eligible transactions.
Analysis:
- Authorize.net offers detailed control over fraud prevention settings, beneficial for businesses wanting to fine-tune their security measures.
- Square's automated fraud detection provides convenience with less manual configuration.
Considerations:
- Decide whether you prefer granular control over fraud settings (Authorize.net) or the convenience of built-in protection (Square).
- Consider the nature of your business and the level of fraud risk you face.
Customer Support
Reliable customer support is crucial when dealing with payment processing issues.
Authorize.net offers 24/7 customer support via phone and email, ensuring immediate assistance whenever needed.
Square provides phone support during business hours, along with extensive online resources, tutorials, and community forums.
Analysis:
- Authorize.net's round-the-clock support is advantageous for businesses requiring immediate assistance.
- Square's support is suitable for businesses comfortable with self-service resources and standard business hours.
Considerations:
- If 24/7 support is essential, Authorize.net offers a clear advantage.
- For businesses that can rely on online resources, Square's support may be sufficient.
International Support
Expanding globally requires a payment solution that supports international transactions.
Authorize.net supports merchants in the U.S., Canada, U.K., Europe, and Australia. However, its international capabilities are limited compared to some competitors.
Square operates in the U.S., Canada, U.K., Australia, and Japan. International support is limited, and merchants cannot accept payments from customers outside these countries through Square.
Analysis:
- Both platforms have limited international support, but Authorize.net offers slightly broader coverage.
- If international sales are significant, consider a gateway with extensive global capabilities.
Considerations:
- Evaluate your target markets to determine if either platform meets your international needs.
- For broader international support, alternative payment gateways may be more suitable.
Pricing Models
Authorize.net Pricing
- Transaction Fees: 2.9% + $0.30 per transaction.
- Monthly Gateway Fee: $25.
- Setup Fees: None.
- Additional Costs: May incur fees for advanced features or merchant account services.
Square Pricing
- Transaction Fees: 2.9% + $0.30 online; 2.6% + $0.10 in-person.
- Monthly Fees: None for basic services.
- Setup Fees: None.
- Hardware Costs: Ranging from $0 for basic magstripe reader to $799 for Square Register.
- Additional Costs: Fees for premium features like payroll or marketing tools.
Cost-Effectiveness
When considering payment solutions, it's important to note that Authorize.net may be more expensive for businesses with low sales volumes due to its monthly fee.
On the other hand, Square tends to be more cost-effective for small businesses or those with variable sales volumes, as it does not charge a monthly fee for basic services.
Must-Have Features Comparison
These are the must-have features payment processing solutions should have in 2024. This table shows whether or not these features are supported on Authorize.net and Square.
Additional Considerations
Consumer Trust: Square's brand recognition and user-friendly solutions can enhance customer trust and satisfaction. This can be particularly beneficial for businesses looking to establish a reliable and seamless payment experience for their customers.
Merchant Account Requirement: Authorize.net requires a separate merchant account unless using their all-in-one option, which can add an extra step for businesses setting up their payment processing. In contrast, Square acts as both a payment gateway and merchant account provider, simplifying the process for merchants.
Scalability: Both platforms are capable of handling high transaction volumes, making them suitable for growing businesses. However, Square's integrated ecosystem may offer more convenience and flexibility as your business expands, providing a cohesive suite of tools and services.
Pick the Right Solution for Your Online Shop
Choosing between Authorize.net and Square depends on your ecommerce business's specific needs.
Choose Authorize.net if:
- You require advanced fraud detection with customizable settings.
- 24/7 customer support is essential for your operations.
- You prefer to use your own merchant account and have existing relationships with banks.
- Your business operates primarily online and does not require POS hardware.
Choose Square if:
- You need an integrated solution for both online and in-person sales.
- You value ease of integration and setup with minimal technical expertise required.
- Offering multiple payment options, including mobile wallets, is important.
- You prefer to avoid monthly fees and have variable sales volumes.
By carefully evaluating these factors, you can select the payment solution that best aligns with your operational needs and growth objectives.
There are other Square alternatives, if that is what you think is the best fit, make sure you know them all.
Frequently Asked Questions
We have answered some of the commonly asked questions in the Authorize.net vs Square debate.
Can I use both Authorize.net and Square on my ecommerce site?
Yes, it's possible to integrate both, allowing customers to choose their preferred payment method. However, managing multiple payment gateways may increase complexity.
Which platform is better for brick-and-mortar stores?
Square is better suited for physical stores due to its comprehensive range of POS hardware and in-person payment solutions.
Do Authorize.net and Square offer protection against fraud?
Both platforms provide fraud detection tools. Authorize.net offers an Advanced Fraud Detection Suite with customizable settings, while Square includes automated fraud detection in its services.
How quickly can I access my funds?
Authorize.net: Funds are typically deposited into your merchant account within 2-3 business days.
Square: Funds are usually available in 1-2 business days, with options for instant transfers for a fee.
Do they support recurring billing and subscriptions?
Yes, both platforms offer recurring billing features. Authorize.net provides advanced subscription tools, while Square offers easy setup with recurring invoices and subscription management.
Are there any hidden fees with Authorize.net or Square?
Authorize.net charges a $25 monthly fee in addition to transaction fees. Square does not have monthly fees but may charge for additional services or premium features.
Which platform offers better customer support?
Authorize.net provides 24/7 phone and email support. Square offers phone support during business hours and extensive online resources.
Can I customize the checkout experience with these gateways?
Authorize.net: Offers customization but may require technical expertise.
Square: Provides user-friendly tools for customizing the checkout experience.
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